NAB survey tries to redress the damage

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National Australia Bank, the nation's largest lender, is planning to contact opinion makers, clients and investors to find out how the recent boardroom turmoil and foreign exchange trading scandal have influenced their relationship with the bank.

Findings of the initial survey will be used to create an index, called "the stakeholder relationship index", to measure and benchmark the quality of the relationship of the bank on a continuing basis.

The index, based on techniques developed by Jim Grunig of the University of Maryland, seeks to measure "the four distinct dimensions of relationships": trust, commitment, satisfaction and "mutuality of control".

"As you know, the National has experienced many difficult issues in recent months and has undergone significant changes," the bank says in a letter sent to about 100 members of the media, government, other opinion makers and the broader community.

The review will complement chief executive John Stewart's current "Let's Talk" program, in which bank staff will attend seminars and be invited to offer their views on how management can be improved.

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Improving the bank's culture was a key recommendation of both the Australian Prudential Regulatory Authority and PricewaterhouseCoopers reports following NAB's $360 million foreign-exchange losses.

Mr Stewart is aiming to overhaul the "good news" culture that stifled criticism and to replace it with a more dynamic environment that, it hopes, will prevent other crises and improve service to customers.

"The research will capture views on the health of our relationship, perceptions of our reputation and any issues of concern," the letter states. "All responses will be combined to form a total picture of views and experiences.

"National's strategy includes building trusted relationships with stakeholders. Therefore, the strength and quality of our stakeholder relationships are of critical importance to us."

The review will be conducted by Marketing & Research Associates, via 30-minute face-to-face interviews.